TotalEnergies SE has announced plans to purchase VSB Group, a Germany-based renewable energy project developer, from private equity firm Partners Group Holding AG for €1.57 billion ($1.6 billion). This acquisition aligns with TotalEnergies’ strategy to strengthen its renewable energy portfolio, particularly in Germany, where long-term power prices are supported by the phase-out of coal and nuclear energy. The completion of the deal is subject to regulatory approvals.
In a parallel move, TotalEnergies has agreed to sell a 50% stake in a 2-gigawatt portfolio of solar and battery projects in Texas to Apollo Global Management for $800 million. This divestment aims to optimize the company’s capital allocation and enhance profitability within its Integrated Power business, according to Stéphane Michel, president of gas, renewables, and power at TotalEnergies.
The company has been aggressively expanding its clean energy investments, even as some competitors scale back renewable efforts in favor of fossil fuel profits. Its focus includes offshore wind projects, battery storage, and renewable power marketing, as seen in its recent acquisitions and auction wins in Germany.
VSB Group specializes in managing renewable projects, including solar, wind, and hydro power, across Germany, France, Poland, and Italy. With more than 500 employees and 21 offices worldwide, the company provides services such as project management and environmental planning. Partners Group, which acquired an 80% stake in VSB in 2020, is capitalizing on investor interest in the infrastructure sector through this sale.
The acquisition comes amidst challenges for TotalEnergies’ renewable strategy in other regions, including a pause on new investments with India’s Adani Group and a suspension of an offshore wind farm in New York. However, the VSB deal underscores TotalEnergies’ commitment to renewable growth as part of its transition to cleaner energy sources.
TotalEnergies is a leading global energy company engaged in producing and marketing a diverse range of energies, including oil, biofuels, natural gas, green gases, renewables, and electricity. With a workforce of over 100,000 dedicated employees, we strive to deliver energy that is reliable, affordable, and sustainable to as many people as possible. Operating in approximately 120 countries, TotalEnergies integrates sustainability into the core of its strategy, projects, and operations.
